Real party in interest
Encyclopedia
In law, the real party in interest is the one who actually possesses the substantive right being asserted and has a legal right to enforce the claim (under applicable substantive law
). Additionally, the "real party in interest" must sue in his own name. In many situations, the real party in interest will be the parties themselves (i.e., plaintiff
and defendant
).
, by preventing people from randomly suing on behalf of other persons or things they have no connection to. The idea is that if persons wish to bring about major changes in something which they lack a direct and immediate personal stake in, they must resort to lobbying the legislature
. In other words, if one merely believes the status quo is bad public policy but cannot point to any direct injury to oneself other than one's dislike of the status quo, one is not a real party in interest. In jurisdictions like India
which lack this concept, individuals file random lawsuits all the time on what are really public policy questions better suited for legislative analysis, which is why their court systems are extraordinarily congested.
, when a case goes up on writ of mandate (California's version of mandamus
) the appellant goes first in the case caption on appeal as the petitioner, and the superior court becomes the respondent. The true opponent is then listed below those names as the "real party in interest." This is how a number of famous California cases like Burnham v. Superior Court of California
(1990) ended up with such unusual names.
When a trustee
is a party to a lawsuit, the real party in interest is the beneficiary
of the trust
. In the United States
, Rule 17 of the Federal Rules of Civil Procedure
expressly provides that trustees are the real party in interest when it is necessary to sue on behalf of the estate. A beneficiary may sue under these circumstances only when the trustee refuses or neglects to bring suit.
When funds belonging to a party are held on account, but not necessarily in trust, by a financial institution (e.g., a bank checking account is garnished by a third party who claims a valid unpaid debt) the bank is typically sued as nominal defendant
. Of course, the real party in interest is the owner of the account, who has an absolute right to intervene and protect his assets.
Substantive law
Substantive law is the statutory or written law that defines rights and duties, such as crimes and punishments , civil rights and responsibilities in civil law. It is codified in legislated statutes or can be enacted through the initiative process.Substantive law stands in contrast to procedural...
). Additionally, the "real party in interest" must sue in his own name. In many situations, the real party in interest will be the parties themselves (i.e., plaintiff
Plaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
and defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
).
Purpose
The reason for the concept of the "real party in interest" is to protect the basic principle of separation of powersSeparation of powers
The separation of powers, often imprecisely used interchangeably with the trias politica principle, is a model for the governance of a state. The model was first developed in ancient Greece and came into widespread use by the Roman Republic as part of the unmodified Constitution of the Roman Republic...
, by preventing people from randomly suing on behalf of other persons or things they have no connection to. The idea is that if persons wish to bring about major changes in something which they lack a direct and immediate personal stake in, they must resort to lobbying the legislature
Legislature
A legislature is a kind of deliberative assembly with the power to pass, amend, and repeal laws. The law created by a legislature is called legislation or statutory law. In addition to enacting laws, legislatures usually have exclusive authority to raise or lower taxes and adopt the budget and...
. In other words, if one merely believes the status quo is bad public policy but cannot point to any direct injury to oneself other than one's dislike of the status quo, one is not a real party in interest. In jurisdictions like India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
which lack this concept, individuals file random lawsuits all the time on what are really public policy questions better suited for legislative analysis, which is why their court systems are extraordinarily congested.
Applications
In California lawCalifornia law
California law consists of several levels, including constitutional, statutory, and regulatory law, as well as case law.-Constitutional law:...
, when a case goes up on writ of mandate (California's version of mandamus
Mandamus
A writ of mandamus or mandamus , or sometimes mandate, is the name of one of the prerogative writs in the common law, and is "issued by a superior court to compel a lower court or a government officer to perform mandatory or purely ministerial duties correctly".Mandamus is a judicial remedy which...
) the appellant goes first in the case caption on appeal as the petitioner, and the superior court becomes the respondent. The true opponent is then listed below those names as the "real party in interest." This is how a number of famous California cases like Burnham v. Superior Court of California
Burnham v. Superior Court of California
Burnham v. Superior Court of California, County of Marin, was a United States Supreme Court case concerning the transient jurisdiction of a forum state. All nine justices were unanimous concerning the judgment, but the Court issued a fractured decision...
(1990) ended up with such unusual names.
When a trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
is a party to a lawsuit, the real party in interest is the beneficiary
Beneficiary (trust)
In trust law, a beneficiary or cestui que use, a.k.a. cestui que trust, is the person or persons who are entitled to the benefit of any trust arrangement. A beneficiary will normally be a natural person, but it is perfectly possible to have a company as the beneficiary of a trust, and this often...
of the trust
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Rule 17 of the Federal Rules of Civil Procedure
Federal Rules of Civil Procedure
The Federal Rules of Civil Procedure govern civil procedure in United States district courts. The FRCP are promulgated by the United States Supreme Court pursuant to the Rules Enabling Act, and then the United States Congress has 7 months to veto the rules promulgated or they become part of the...
expressly provides that trustees are the real party in interest when it is necessary to sue on behalf of the estate. A beneficiary may sue under these circumstances only when the trustee refuses or neglects to bring suit.
When funds belonging to a party are held on account, but not necessarily in trust, by a financial institution (e.g., a bank checking account is garnished by a third party who claims a valid unpaid debt) the bank is typically sued as nominal defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
. Of course, the real party in interest is the owner of the account, who has an absolute right to intervene and protect his assets.